Correlation Between Vastned Retail and JAPAN AIRLINES
Can any of the company-specific risk be diversified away by investing in both Vastned Retail and JAPAN AIRLINES at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vastned Retail and JAPAN AIRLINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and JAPAN AIRLINES, you can compare the effects of market volatilities on Vastned Retail and JAPAN AIRLINES and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vastned Retail with a short position of JAPAN AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and JAPAN AIRLINES.
Diversification Opportunities for Vastned Retail and JAPAN AIRLINES
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vastned and JAPAN is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and JAPAN AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JAPAN AIRLINES and Vastned Retail is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vastned Retail NV are associated (or correlated) with JAPAN AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JAPAN AIRLINES has no effect on the direction of Vastned Retail i.e., Vastned Retail and JAPAN AIRLINES go up and down completely randomly.
Pair Corralation between Vastned Retail and JAPAN AIRLINES
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.73 times more return on investment than JAPAN AIRLINES. However, Vastned Retail NV is 1.38 times less risky than JAPAN AIRLINES. It trades about 0.64 of its potential returns per unit of risk. JAPAN AIRLINES is currently generating about -0.17 per unit of risk. If you would invest 2,060 in Vastned Retail NV on October 16, 2024 and sell it today you would earn a total of 100.00 from holding Vastned Retail NV or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.25% |
| Values | Daily Returns |
Vastned Retail NV vs. JAPAN AIRLINES
Performance |
| Timeline |
| Vastned Retail NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| JAPAN AIRLINES |
Vastned Retail and JAPAN AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and JAPAN AIRLINES
The main advantage of trading using opposite Vastned Retail and JAPAN AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail position performs unexpectedly, JAPAN AIRLINES can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JAPAN AIRLINES will offset losses from the drop in JAPAN AIRLINES's long position.| Vastned Retail vs. Schnitzer Steel Industries | Vastned Retail vs. COSMOSTEEL HLDGS | Vastned Retail vs. Nippon Steel | Vastned Retail vs. PT Steel Pipe |
| JAPAN AIRLINES vs. Nippon Steel | JAPAN AIRLINES vs. GRUPO CARSO A1 | JAPAN AIRLINES vs. STEEL DYNAMICS | JAPAN AIRLINES vs. The Japan Steel |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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